Gen.acc.8se.pf Discussion Threads

[skinny] 29/6/2015 15:26

Yes - well done - I looked and then just did nothing!

[tiltonboy] 29/6/2015 15:24

Having sold 50% of my holding at 155, I have bought them back at 137.45.

Should have done the lot!

[rrr] 28/6/2015 21:01

Thanks eithin.

[eithin] 28/6/2015 18:37

Sunday Times is expecting an announcement this week stating increase in out-turn for Q4 (2014) and Q1 GDP, against previous estimates. This to accompany increase in growth forecast for 2015. It speculates that this will bring forward increase in interest rates to well within 12 months.

[rrr] 28/6/2015 18:26

Thanks Skyship. Any idea why the sell-off??

[skyship] 28/6/2015 17:47

Having flirted with yields down at c5.6%, now all the Aviva perpetual prefs have suddenly sold off to yields c6.1%:

# AV.A 8.75% - 138.0p-142.0 – Yld on the offer share price = 6.16%
# AV.B 8.375% - 134.0-138.0p – Yld on the offer share price = 6.07%
# GACA 8.875% - 140.0-144.0 – Yld on the offer share price = 6.16%
# GACB 7.875% - 125.0p-129.0p – Yld on the offer share price = 6.10%

After the incessant selling on Friday, all these prefs are likely to have a true offer 1.0p lower than those shown above.

[mac15] 14/5/2015 14:19

Pleasant rise continuing! Remember buying some sub £1 so very changed conditions. Anyone getting out at these levels?

[envirovision] 29/1/2015 09:18

I would love to see what a 5% tender looked like in the present climate, I suspect it would see only modest interest and at the same time would help push yields on other perpetuals down.

There seems to be a standoff on the preference share and the perpetual preference market, there's a shortage of recent issues and I think yields really need to fall a lot further before they become attractive to new issuers again.

[monty panesar] 28/1/2015 20:39

10 year gilt yield is 1.48%. The prefs are playing catch up.Dont be shocked if these yield 4% in 18 months time. Don't you love QE? Wrong that it is.

I agree a tender offer may be on its way. They can issue bonds at a fraction of the cost. Tender at a 5% yield and issue a bond at 3% coupon. Makes economic sense for aviva.

[tiltonboy] 20/1/2015 22:31

I had previously set a selling target at sub 6% yields, but I think given the outlook for inflation and interest rates, I see no reason why yields can't fall into the 5-5.5% range, which gives some good further upside. I will re-assess if and when they get there.

[envirovision] 20/1/2015 19:45

What do you see the yields settling at on the Perpetual Tilton? 6%, 5.5%, lower ?

[pyemckay] 20/1/2015 16:58

my prefs have been strong recently. low interest, low inflation must make these a lot more appealing to income hunters.

[skinny] 20/1/2015 16:13

The latter crossed my mind - have a look at AV.A & AV.B.

[mac15] 20/1/2015 16:08

Have lots of these and suspect now adjusting up to reflect zero inflation prospects. Could Aviva buy these back, as sure they could borrow the money a lot cheaper than the divi they pay on their pref shares?

[tiltonboy] 19/1/2015 20:20

They have been exceptionally well bid for days. I was paying 138 last week, and they were 137 bid at the time.

[jonwig] 19/1/2015 17:37

"Interest rates will stay low for ever" ... somebody said somewhere.

Maybe not, but as Nelson said, maybe, "I see no ships."

[skinny] 19/1/2015 16:18

Multi year high today.

[nerja] 01/7/2014 15:40

Prefs seem to be rolling over the last week or so

[skyship] 07/6/2014 18:23

Hmm - suspect there may not be enough in it at the moment due to both Stamp duty and those Spreads..

[pyemckay] 07/6/2014 17:39

its could pay to switch to gaca if i could deal well inside the spreads. i hold 7700 ava and 9000 avb. Think im going to do the calculations

[skyship] 07/6/2014 13:55

Current status of the 4 AVIVA prefs – all cumulative but irredeemable.

# AV.A 8.75% - 138.5p-141.0XD – Yld on the offer share price = 6.20%
# AV.B 8.375% - 135.5p-137.0p – Yld on the offer share price = 6.11%
# GACA 8.875% - 133.5p-135.75pXD – Yld on the offer share price = 6.54%
# GACB 7.875% - 124.0p-126.0p – Yld on the offer share price = 6.25%

[envirovision] 04/6/2014 10:51

XD divi will be paid on 1 July 2014

[mac15] 20/3/2014 11:55

Real spread between buy and sell has narrowed on these to less than .5 p ie 135.23 sell and 135.5 buy. Looks like upward trend intact. Maybe those freed from compulsory annuity purchase will consider these as a better income provider.

[mac15] 18/3/2014 12:23

Enviro-Gradual creep towards 1.45 in progress.

[envirovision] 13/3/2014 16:26

Per my post 113. Headed to £1.45 minimum imo.

This imo, Given you've already got Lloyds 6.475% already at £1.02, ....say no more.